Indonesian digital credit platform Kredivo has secured an additional $100-million debt facility from Chicago-headquartered private credit firm Victory Park Capital Advisors (VPC), according to an official announcement.
Kredivo had closed a $100-million debt facility with VPC last November, which marked its largest-ever deal with a credit provider.
The combined size of the debt facility for Kredivo makes it VPC’s largest debt commitment to a fintech firm outside of the US and Europe.
Kredivo will use the proceeds from the latest transaction to grow and further diversify its loan book, all of which is third-party generated.
“The large capital pool made available via this facility increase will enable the business to scale further in 2021 and beyond and get us closer to our goal of serving up to 10 million customers in Indonesia over the next few years,” said Kredivo Indonesia CEO Umang Rustagi.
The transaction comes as Kredivo is learnt to have been in talks with VPC for a potential public listing via one of the latter’s SPAC. The US private capital manager has four blank cheque companies — ranging from $200-225 million in size — to its name.
Meanwhile, Kredivo’s parent company, FinAccel, has acquired a 24% stake in local bank PT Bank Bisnis Internasional Tbk, according to a stock exchange disclosure by the latter in May.
Founded in 2016, Kredivo provides customers in Indonesia instant credit financing for e-commerce and offline purchases and personal loans. Its users can ‘buy now and pay later’ (BNPL) at low-interest rates, while its merchant partners benefit from instant point-of-sale financing.
It competes directly with Sequoia-backed digital credit lender Akulaku, and peer-to-peer lenders like UangTeman, as well as online marketplaces and payment startups like Tokopedia, Traveloka, and OVO which have also developed their own BNPL features.
Kredivo raised one of the largest funding rounds by a non-unicorn company in the region when it bagged $90 million in a Series C round in December 2019 co-led by South Korea’s Mirae Asset-Naver Asia Growth Fund and the Australian venture capital firm Square Peg. The round reportedly pegged Kredivo’s valuation at almost $500 million.
Other investors on Kredivo’s cap table include Singtel Innov8, Telkomsel Indonesia, MDI Ventures, Cathay Innovation, DST Partners and Kejora Intervest.